RHIM - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | RHIM | Market Cap | 7,565 Cr. | Current Price | 366 ₹ | High / Low | 548 ₹ |
| Stock P/E | 39.2 | Book Value | 199 ₹ | Dividend Yield | 0.68 % | ROCE | 7.71 % |
| ROE | 5.62 % | Face Value | 1.00 ₹ | DMA 50 | 422 ₹ | DMA 200 | 456 ₹ |
| Chg in FII Hold | -0.37 % | Chg in DII Hold | 0.39 % | PAT Qtr | 68.9 Cr. | PAT Prev Qtr | 41.3 Cr. |
| RSI | 31.3 | MACD | -19.9 | Volume | 2,03,305 | Avg Vol 1Wk | 2,16,365 |
| Low price | 362 ₹ | High price | 548 ₹ | PEG Ratio | -6.73 | Debt to equity | 0.02 |
| 52w Index | 2.28 % | Qtr Profit Var | 22.7 % | EPS | 9.35 ₹ | Industry PE | 31.5 |
📊 RHI Magnesita (RHIM) shows weak fundamentals and bearish technical indicators, making it a risky candidate for swing trading. The RSI at 31.3 indicates oversold conditions, while MACD (-19.9) confirms negative momentum. The stock is trading well below both its 50 DMA (422 ₹) and 200 DMA (456 ₹), signaling strong resistance overhead. High P/E (39.2 vs industry 31.5) and low efficiency metrics further reduce confidence despite recent profit growth.
💡 Optimal Entry Price: Around 360–370 ₹ (near current support)
💡 Exit Strategy (if already holding): Consider exiting near 410–420 ₹ (short-term resistance at 50 DMA) unless momentum improves.
🌟 Positive
- Quarterly PAT improved (68.9 Cr. vs 41.3 Cr.), showing earnings recovery.
- EPS of 9.35 ₹ reflects improving profitability.
- Low debt-to-equity ratio (0.02) indicates financial stability.
- DII holdings increased (+0.39%), showing some domestic support.
⚠️ Limitation
- High P/E ratio (39.2) compared to industry average (31.5), suggesting overvaluation.
- Weak ROCE (7.71%) and ROE (5.62%) show poor efficiency.
- Dividend yield of 0.68% is modest.
- Stock trading below both 50 DMA and 200 DMA.
📉 Company Negative News
- Bearish technical indicators: RSI oversold and MACD negative.
- Stock underperforming relative to recent highs (548 ₹).
- FII holdings declined (-0.37%), showing reduced foreign confidence.
📈 Company Positive News
- Quarterly profit growth of 22.7% shows operational improvement.
- Debt-free balance sheet ensures resilience.
- Domestic institutional investors marginally increasing holdings.
🏭 Industry
- Industry P/E at 31.5, while RHIM trades at a premium (39.2).
- Refractories sector benefits from steel and industrial demand.
- Competition remains strong, requiring efficiency improvements.
✅ Conclusion
RHIM is fundamentally weak and technically bearish, making it a risky swing trade candidate. Entry near 360–370 ₹ is possible for aggressive traders, with an exit target around 410–420 ₹. Long-term investors should remain cautious given poor efficiency metrics and stretched valuations despite short-term profit recovery.